Daimler Truck, Traton shares fall on Trump's truck tariffs

Core Viewpoint - The announcement of a 25% tariff on heavy-duty trucks by the U.S. President has led to a decline in shares of Daimler Truck and Traton, exacerbating existing trade tensions in the automotive sector [1][3]. Group 1: Impact on Companies - Shares of Daimler Truck fell by 2% and Traton's shares decreased by 2.4% following the tariff announcement [3]. - Citi estimates that the 25% tariff on trucks assembled in Mexico could impact Daimler Truck's earnings by approximately 700-800 million euros ($818-$934 million), although the company may absorb about half of this through price increases [4]. - Volvo Group, which manufactures all of its U.S. trucks domestically, saw its shares rise by 3.5% in response to the tariff announcement [6]. Group 2: Industry Reactions - Germany's auto industry association criticized the tariff as "incomprehensible," warning that it would burden investment and jobs in the U.S., weaken supply chains, and increase costs [3]. - Analysts at Bernstein noted uncertainty regarding whether the tariffs would apply to USMCA-compliant Mexican sites and whether industry-specific tariffs would stack on top of country-based tariffs [5].